Today’s workforce has a lot to think about when it comes to money management. With all of life’s financial demands, emergency and rainy-day funds seem to take a back seat because of present expenses and poor financial management. In fact, the Federal Reserve has stated that four in ten American households would not be able to come up with $400 in the event of a financial emergency. So, what happens when that old dryer finally kicks out? Or the roof leaks?
Prudential’s research found that 60 percent of families have been hit with some kind of financial emergency within the past year. For many Americans, the funds will be covered by credit cards, personal loans, or they just won’t be able to fix the problems at all. Unresolved problems in finances lead to increased stress. This stress is almost guaranteed to affect the employees’ work productivity, motivation, and general well-being.
In a 2018 study of 2,603 adults conducted by AARP and Boston Research Technologies, 71 percent said they would likely participate in a payroll-deduction rainy-day savings program if their employer offered one. Furthermore, 87 percent said they would likely participate if their employer matched. Many companies are stepping up to encourage saving for a “rainy-day fund” by creating programs like these or offering resources and reward payments for their employees taking steps to save.
Here are some examples of companies that have taken the leap to help their workforce:
Would your company benefit from providing rainy-day fund assistance? Reach out to Purple Ink today and we can help guide you toward implementation!